Coverage for a property, business or rental, and the loan a target ratio will support.
Example Result
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The calculated result will appear here after you press Calculate.
Estimates for planning only; not financial, tax or investment advice. See our Disclaimer.
The debt service coverage ratio tells a lender how many times your income covers your loan payments. Divide annual net operating income by annual principal and interest: $120,000 of income against $90,000 of payments is 1.33×, leaving a one-third cushion. Below 1.0× the income does not cover the debt. Enter your income and debt service, or enter the loan amount, rate and term and let the calculator work out the payment. For a rental, switch to rent ÷ PITIA, the measure used for investor "DSCR loans". Then reverse it: set the ratio your lender wants and see the largest loan your income supports.
Choose how you want to work: income and debt service, loan details, a rental, or the largest loan.
Enter net operating income: income less operating costs, before income tax, depreciation and debt payments.
Enter the debt service, or the loan amount, rate and term.
Press Calculate.
By O.E. — Partner, chairman of the board and CEO of a metal products manufacturer for 21 years; the company exports to 45 countries.
Drafted with AI assistance; calculations checked against primary sources and tested with the site's own code. About FlowUtil
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NOI is measured before income tax, depreciation and debt payments. PITIA is principal, interest, taxes, insurance and association dues. Because each lender adjusts income in its own way, the same property can show different ratios on two term sheets.
| Symbol | Meaning |
|---|---|
| Property | NOI ÷ annual debt service. NOI = rent less operating costs |
| Business | Operating cash flow ÷ debt service. SBA uses EBITDA |
| Rental loan | Monthly rent ÷ monthly PITIA, on gross rent |
1A 25-year loan of $1,000,000 at 6.5%, with NOI of $120,000.
$6,752.07 a month × 12 = $81,025; $120,000 ÷ $81,025
1.48×
2NOI of $150,000 and a required 1.25×, at 6.5% over 25 years.
$150,000 ÷ 1.25 = $120,000 a year; present value of that payment
Largest loan $1,481,027
At 7.5% it falls to $1,353,196: one point of interest takes away $128,000 of borrowing.
3A rental earning $2,400 a month with a PITIA of $2,000.
2,400 ÷ 2,000
1.20
This version uses gross rent, with no deduction for vacancy, repairs or management, so 1.20 here is a thinner margin than 1.20 on an NOI basis.
A loan that looks comfortable should still pass with a higher rate and lower income. A floating-rate loan needs that test most.
| NOI | Rate | DSCR on $1 million over 25 years |
|---|---|---|
| $120,000 | 6.5% | 1.48× |
| $150,000 | 6.5% | 1.85× |
| $150,000 | 7.5% | 1.69× |
| $142,500 (5% less income) | 6.5% | 1.76× |
SBA's rule for 7(a) Small loans requires a ratio of at least 1.10 to 1, on a historical or projected basis (Procedural Notice 5000-876777, effective 1 March 2026). Fannie Mae's multifamily term sheets use 1.25× at Tier 2.
Every lender sets its own test, and the income it counts varies. Ask yours before you rely on a figure. This page does not offer credit advice.